Corporate Snippets on Feb 17
Ø Govt. may finally get a fraction of AGR dues on Monday
Ø Deloitte to stop non-audit services to audit clients
Ø DLF plans to raise Rs 2K cr via sale of commercial land
Ø Govt allows Indian firms to list GDRs at IFSC
Ø OIL to move TDSAT against DoT seeking Rs 48,489 cr
Ø Unichem, Macleods Pharma recall drugs from US market
Ø ArcelorMittal- Nippon Steel in talks to buy 500 Mw Bhander power unit
Ø JSW shakes up the paints market dominated by Asian Paints, Berger
Ø In an 'all-share deal', LIC Housing-IDBI Bank merger on fast track
Ø Amazon, trade bodies' courtroom battle may impact e-commerce policy
Ø Calcutta HC asks RBI to take appropriate action against Bank of Baroda
Ø FRBM not breached in the Budget, says Sitharaman
Ø India in talks with Russia for long-term import of crude oil
Ø IMG clears BPCL sale bid documents, to be issued after ministerial group nod
Ø MMTC Q3 net profit falls 62% to Rs 12.48 cr
Ø Tata Power eyes ₹6,000 crore from asset sales
Ø USFDA seeks voluntary action at Dr Reddy’s Duvvada facility in AP
Ø Tata Steel capex likely to touch 9,000 cr in FY20
Ø Creditors to Videocon Group likely to appeal against insolvency tribunal’s order
Ø Indian firms’ Q3 net sales fall to over five-year low
Ø Consumption slump hits innovation at FMCG firms
Ø Vodafone Idea to part pay AGR dues from loans and internal reserves
Ø Deutsche Bank’s risky debt decision loses bite
Ø Move over Mauritius, FPIs now eye Singapore to channel funds
Ø ITC-invoices mismatch: Huge sums sought as GST credit denied
Ø Coronavirus could damage global economic growth in 2020: IMF
Ø About 92% of large taxpayers filed annual returns for 2017-18: GSTN
Ø FPIs remain net buyers in first half of February, invest Rs 24,617 crore
Ø Credit growth momentum gathering pace: RBI chief
Ø Covid19 may cut supply of generic drug ingredients from China
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👉 Decision of the Council of the Institute regarding cut-off date for condonation of cases for the year 2020-21 - (14-02-2020)
https://www.icai.org/new_post.html?post_id=16311&c_id=240
👉 Extension of the Last Date for submission of application for Empanelment of Chartered Accountants firms/LLPs with O/o C&AG for the year 2020-21 - (14-02-2020)
https://www.icai.org/new_post.html?post_id=16312&c_id=240
👉 Draft report of the High Level Independent Committee on Exam Processes and Regulations - (14-02-2020)
https://www.icai.org/new_post.html?post_id=16314&c_id=219
👉 NIDHI (Second Amendment )Rules, 2020.Pdf1.8 MB)
http://www.mca.gov.in/Ministry/pdf/rule_14022020.pdf
👉 Vacancy circular for Direct Recruitment of Manager and Assistant Manager in NFRAPdf1.8 MB)
http://www.mca.gov.in/Ministry/pdf/notices_14022020.pdf
👉🏻CBDT notifies forms for Cos to avail lower corporate taxes
(CBDT has notified Forms 10-IC and 10-ID for existing companies that want to avail lower I-T rate and new manufacturing firms, respectively)
👇🏻 👇🏻 👇🏻
https://bit.ly/2tXVafF
👉🏻SEBI rolls out system to detect misuse of client securities by brokers
(SEBI introduced a system to monitor and detect misuse of client securities by stock brokers, Under the new system an online register will record brokers’ holdings of client securities)
👇🏻 👇🏻 👇🏻
http://bit.ly/39AcPJv
👉🏻PAN to become inoperative after March 31 if not linked with Aadhaar
(Till January 27, 2020, over 30.75 crore PANs have already been linked to Aadhaar. However, 17.58 crore PANs are yet to be linked with Aadhaar)
👇🏻 👇🏻 👇🏻
http://bit.ly/31Wn4VX
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New Income Tax Forms- (a) Form No. 10-IC and (b) Form No.10-ID Notified: In order to choose the Option of Lower 22% Corporate Tax Rate for the AY 2020-2021, a Domestic Company shall be required to file Form No.10-IC as per the provisions of Section 115BAA; and;
In order to choose the Option of 15% Corporate Tax Rate, a New Domestic Manufacturing Company shall be required to file its Application on Form No.10-ID as per the provisions of Sec.115BAB.
INTEGRATION OF EWAY BILL WITH VAHAN SYSTEM OF TRANSPORT DEPARTMENT: EWB IS NOT GENERATED IF VEHICLE NUMBER IS NOT AVAILABLE.
E-Way bill has been integrated with Vahan System of Transport Department. You can't generateEWB when the Vehicle no. is not available in the Vahan system and user will get ‘Alert Message and can't generate the EWB.
You are requested to check and update the vehicle registration with your concerned Regional Transport Office (RTO). If Vehicle is registered in more than one RTO, You need to approach your RTO and request for updation. Once the details are updated this message will not appear again.
In spite of having a Valid RC of my Vehicle, If it still showing‘ Alert Message’ it is suggested to reach to your concerned RTO. Once the details are updated, the status in e-Waybill system will also get updated.You can always check your vehicle number in Vahan system; https://vahan.nic.in/nrservices/faces/user/searchstatus.xhtml
When you are unable to find your vehicle details on Vahan system then you need to visit RTO with original RC and other documents. If the Vehicle number is with temporary registration, the details are not verified and enter the temporary number starting with TR.
If Vehicle number are shown in Vahan website but not available in e-way bill portal then you need to contact with the E-way bill Helpdesk and submit your grievance.
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CBDT has inserted a new Rule 114AAA to provide the manner in which the PAN of a person will become inoperative if it is not linked with the Aadhaar on or before 31-03-2020. Once PAN of an assessee become inoperative, it shall be deemed that he has not furnished or intimated or quoted his PAN, as the case may be. The inoperative PAN can be reactivated subsequently by intimating the Aadhaar to the department.
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There are some discussions in social media w.r.t. interest calculation on delayed GST payments post a few media reports regarding Rs. 46000 Cr interest on the delayed GST payments to be collected by tax authorities. On this issue of interest calculation, it is clarified that-
The GST laws, as of now, permit interest calculation on delayed GST payment on the basis of gross tax liability.
This position has been upheld in the Telangana High Court’s decision dated 18.04.2019.
In spite of this position of law and Telangana High Court’s order, the Central Government and several State Governments, on the recommendations of GST Council, amended their respective CGST/SGST Acts to charge interest on delayed GST payment on the basis of net tax liability.
Such amendment will be made prospectively. The States of Telangana and West Bengal are in the process of amending their State GST Acts. After the process of amendment is complete, the changed provisions can be put in operation for the entire country.
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Madras HC allows writ, holds that interest u/s 50 of CGST Act could be demanded only on 'cash' component of tax remitted belatedly and not on 'ITC' component; Opines that, since ITC is available all the while with the Department to the credit of the assessee, same is neither “belated nor delayed”; Cogitates that, “use of the word 'delayed' connotes a situation of deprival” whereas availability of ITC runs counter to this, as it connotes the enrichment of the State, to this extent; Thus, holds that “Section 50 which is specifically intended to apply to a state of deprival cannot apply in a situation where the State is possessed of sufficient funds to the credit of the assessee; Moreover, the argument that ITC is liable to be reversed if found to have been erroneously claimed, and that it may be invalidated in some situations, is inconsequential as “availment and utilization of ITC are two separate events”; Remarks that recently inserted proviso to Section 50(1), as per which interest shall be levied only on that ‘cash’ part of the tax inserted w.e.f. August 01, 2019, clearly seeks to correct an anomaly in the provision as it existed prior to such insertion, hence “should thus, in my view, be read as clarificatory and operative retrospectively”; Observes that the said amendment to Section 50(1), was only at the stage of press release by Ministry of Finance when the Division Bench of Telengana HC passed order in the case of Megha Engineering and Infrastructures Ltd., however, notes that now “the amendment stands incorporated into the Statute and comes to the aid of the assessee”; Refers to recent Madras HC ruling in Daejung Moparts Pvt. Ltd. & SC ruling under Income Tax Law in the case of Anjum M.H.Ghaswala & Ors: Madras HC
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👉 JetLite staff moves NCLT to be part of Jet’s insolvency resolution - The employees of JetLite, a subsidiary of Jet AirwaysNSE -4.97 %, have moved the dedicated bankruptcy court to be part of the corporate insolvency resolution process of the defunct carrier.
On Friday, the employees approached the Mumbai bench of the National Company Law Tribunal (NCLT) with the argument that when they had approached the resolution professional (RP), their claims were rejected.
“Claims submitted to the Jet Airway’s RP are being rejected and JetLite’s employees are being neglected,” argued the counsel for the employees of JetLite. “Jet Airways and JetLite are interdependent entities. The dues of JetLite employees are around Rs 50 crore.
👉 Lenders set to recover 43.1% from insolvency proceedings - Successful resolutions of corporate insolvency proceedings till the end of 2019 are set to result in recoveries of Rs 1.52 lakh crore for lenders, averaging 43.1% of their admitted claims of Rs 3.52 lakh crore, according to data released by the Insolvency and Bankruptcy Board of India (IBBI).
Resolutions in the quarter through December 2019, however, yielded only around 12.2%, or about Rs 2,879 crore, of the admitted claims of Rs 23,668 crore. In the preceding quarter, lenders recovered around 34.4% of their total claims of Rs 78,592 crore.
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V V VIMP
M/s REFEX INDUSTRIES LIMITED Vs THE ASSISTANT COMMISSIONER OF CGST & CENTRAL EXCISE, CHENNAI
Proviso to Section 50 is operative retrospectively and clarificatory in nature – Anomaly Removed
GST - Section 50 - Interest on delayed payment of tax – retrospective effect of proviso to Section 50(1) - petitioner case that Section 50 of CGST Act, 2017 that provides for levy of interest on belated payments would apply only to payments of tax by cash, belatedly, and would not stand triggered in the case of available Input Tax Credit, since such ITC represents credit due to an assessee by the Department held as such - whether in a case where credit is due to an assessee, payment by way of adjustment can still be termed 'belated' or 'delayed' payment of tax – HELD - The use of the word 'delayed' connotes a situation of deprival, where the State has been deprived of the funds representing tax component till such time the Return is filed accompanied by the remittance of tax. The availability of ITC runs counter to this, as it connotes the enrichment of the State, to this extent. Thus, Section 50 which is specifically intended to apply to a state of deprival cannot apply in a situation where the State is possessed of sufficient funds to the credit of the assessee - the proper application of Section 50 is one where interest is levied on a belated cash payment but not on ITC available all the while with the Department to the credit of the assessee. The latter being available with the Department is neither belated nor delayed - The argument of the Revenue that Input Tax Credit is liable to be reversed if it is found to have been erroneously claimed, and that it may be invalidated in some situations, does not militate with aforesaid conclusion – as per proviso to Section 50(1), interest shall be levied only on that part of the tax which is paid in cash, has been inserted with effect from 01.08.2019, but clearly seeks to correct an anomaly in the provision as it existed prior to such insertion. It should thus, be read as clarificatory and operative retrospectively - the impugned notices are set aside and Writ Petitions are allowed
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92% of large taxpayers filed annual returns for 2017-18 as per GSTN
👩🏻🎓The data shows that the number of taxpayers with a turnover of more than Rs 2 crore is 12.42 lakh, which is only 13.4 per cent of the total 92.58 lakh regular taxpayers. This means 80.16 lakh taxpayers are not mandated to file annual returns. (Note that annual return filing is optional for taxpayers having annual turnover up to Rs 2 crore)
👨🏻🎓 The top three states where businesses registered under GST recorded maximum return filing are Maharashtra (96 per cent) followed by Rajasthan and Gujarat (95 per cent each).
👩🏻🎓 Also, the taxpayers who have not filed by the due date can still file the returns for 2017-18 but will be required to pay the late fee.
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income tax (I-T) department has notified forms for companies to avail the reduced corporate tax rates that were announced in September last year. CBDT has notified Forms 10-IC and 10-ID for existing companies that want to avail lower I-T rate and new manufacturing firms, respectively.
CBDT To maximise revenue mobilisation via the direct tax ‘Vivad Se Vishwas’ scheme has made tax officers’ performance under the scheme a vital criterion for their annual appraisals for 2019-20 and future postings. “Details of the number of disputed cases, amount involved in disputed cases as well the number of cases resolved and the amount collected under the scheme may be reported in the self-appraisal.
GST Network CEO said e-invoicing and the new format for filing GST will help improve the ease of doing business and reporting for the indirect taxes. “E-invoicing is a step towards improving ease of doing business and reporting for GST. Manual data entry leads to transcription errors and wrong entries.
Supreme Court has observed that an arbitration clause in an agreement which is required to be duly stamped, was not sufficiently stamped, cannot be acted upon by the Court.
For the purposes of Empanelment in the C&AG Panel prepared by office of C&AG and Bank Branch Auditors’ Panel prepared by ICAI (for which Constitution Certificates as on 1st January, 2020 are issued every year), no condonation of delay in submission of Form 18 beyond 29th Feb., 2020 for the preceding the financial year under audit will be done by ICAI.
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👉 Resolutions via IBC see a big fall in third quarter - Realisation by financial creditors through the Insolvency and Bankruptcy Code (IBC) has fallen drastically in the fiscal third quarter, resurfacing industry concerns over slowing recoveries that are increasingly prompting lenders seek out-of-court settlements.
Data from the Insolvency and Bankruptcy Board of India (IBBI) showed that financial creditors realised just 12% of their claims in the quarter-ended December, down from 34% in the quarter-ended September.
👉 Liquidation remains high in NCLT cases- More than half of the cases admitted to the National Company Law Tribunal (NCLT) are been liquidated as recovery through resolution continues to elude creditors, latest data released by the Insolvency and Bankruptcy Board of India (IBBI) showed. A total of 3,312 cases were admitted in the insolvency courts till the end of the third quarter of the financial year, of which 561 were during the Oct-Dec period. This was the second highest number of cases admitted in a quarter after the July-September period of the current financial year when 565 cases were admitted. Out of a total of 1,351 closed cases, 780 or 58% were closed through liquidation and only 190 cases or 14% were resolved with an average haircut of 57% on admitted claims.
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